The 10 Top Penny Stocks This Week and the One Penny Stock You Need to Buy

Last week was a quiet week for penny stocks, with only one company delivering the kind of triple-digit gain we've come to expect from the best penny stocks.

Last week's top gainer, Westmoreland Resource Partners LP (NYSE: WMLP), jumped over 148% after receiving several performance upgrades from industry analysts. Starting the week around $1.70, Westmoreland closed on Friday at $4.17 - a tremendous gain for this little-known stock.

penny stocksWhile Westmoreland's gains are exciting, it's unlikely that the company's stock continues to generate such large returns. After looking at last week's top performing penny stocks, we'll show you a penny stock that has tremendous profit potential...

Penny Stock Current Share Price Last Week's Gain
Westmoreland Resource Parters LP (NYSE: WMLP) $2.00 148.21 %
Oxbridge Re Holdings Ltd. (Nasdaq: OXBR) $2.00 39.17%
Aegean Marine Petroleum Network Inc. (NYSE: ANW) $2.01 36.05%
Universal Security Instruments Inc. (NYSE: UUU) $1.95 30.91%
Lantronix Inc. (Nasdaq: LTRX) $3.40 30.42%
Arca Biopharma Inc. (Nasdaq: ABIO) $0.74 29.33%
Huttig Building Products Inc. (Nasdaq: HBP) $4.98 28.82%
Energy Fuels Inc. (NYSE: UUUU) $3.35 28.10%
Nortech Systems Inc. (Nasdaq: NSYS) $3.80 28.10%
Gastar Exploration Inc. (NYSE: GST) $0.16 28.00%

While those gains are exciting, it's important to note that investing in penny stocks can also be incredibly risky.

Yes, there are penny stocks that have tremendous growth potential that can easily dwarf your initial investment. However, most penny stocks lack the solid underlying financials necessary to generate a significant return.

Life-Changing Profit Potential: One tiny firm is rapidly developing the parts for a game-changing technology - and the gains from its stock, trading for less than $10, could turn every $1,000 invested into $4,719. Learn more...

In order to identify the best penny stocks, our team uses the Money Morning Stock VQScore™ to identify stocks that have real growth potential.

Developed from our proprietary valuation system, the VQScore identifies undervalued stocks with the highest profit potential by using a blended analysis of a company's earnings potential, growth rate, earnings-per-share acceleration, and market volume.

Our favorite small-cap stock to buy this week has our highest VQScore - meaning it has strong underlying value and a high chance of providing significant gains for investors.

In fact, this penny stock could gain over 100%...

This Is Our Top Penny Stock to Watch This Week

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PDL BioPharma Inc. (Nasdaq: PDLI) is a holding company that manages the pharmaceutical patents generated by Facet Biotech Corp., the company's research and development branch.

Over the last 12 months, PDL stock has risen 40% - and for good reason. Since a majority of the company's original patent holdings expired in 2016, the company has undergone an aggressive restructuring effort to streamline profitability.

But the gains are far from over...

Shortly after several of PDL's holdings expired, the company established a majority ownership position in Noden Pharma DAC, a pharmaceutical company that owns the popular blood pressure drug Tekturna.

This deal was PDL's first acquisition of a commercial asset that could directly generate income for the company - and it's been paying off.

In 2017, PDL grew its year-over-year revenue and beat earnings estimates for every quarter.

And PDL's current market evaluation makes it an absolute bargain. PDL currently has an incredibly low price-to-book ratio of 0.5. As a result, if the company's share price rose to equal its book value, it would double - giving investors a 100% return.

PDL has $405 million in cash on hand - making the company undervalued by default. At $2.53 a share, that's an absolute steal.

As PDL continues to stage a dramatic turnaround, this discrepancy with quickly be corrected – and penny stock investors should lock in this profit opportunity now.

Stocks like PDL are easy to identify thanks to the VQScore system.

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